PracticePeople In PracticeLetsBuyIt.com back near the brink

LetsBuyIt.com back near the brink

Troubled co-op buying website LetsBuyIt.com is again facing an uncertain future after its chief planning officer quit just days after talks with its main backer collapsed.

After narrowly escaping bankruptcy at the start of the year, a streamlined LetsBuyIt cut 200 of its 350 staff and secured emergency funds of Pounds 2.3m (Euro 3.8m) from Shmulik Stein International.

SSI promised another Pounds 15.7m out of total backing of Pounds 31.1m to be released once certain undisclosed targets, spread throughout 2001 and 2002, were met.

LetsBuyIt.com said it had met all the scheduled targets, but the additional promised funds have not been forthcoming and new investment terms proposed by SSI were ‘unacceptable’.

‘LetsBuyIt.com has relied on these payments for its cashflow plan’, the firm admitted.

The firm added that it was now looking for alternative sources of investment and had begun legal proceedings against SSI.

In May, LetsBuyIt.com secured a Pounds 15m equity credit line from New York firm GEM to fund its re-expansion.

But with its share price having fallen 20 per cent since last week, the firm will have to find further funding fast and do so without Rolf Hansen, its chief planning officer.

Hansen resigned earlier this week ‘on his own request for personal and family reasons’, the firm said.

LetsBuyIt.com’s last set of results, for the three months to the end of March, suggests it is losing around Pounds 2.4m a month. Shares in the company were trading at 12p today, down 15p on a month ago.

Links

Lets try it, LetsBuyIt again!

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor